tv Bloomberg Daybreak Australia Bloomberg April 3, 2019 6:00pm-7:00pm EDT
haidi: welcome to "bloomberg daybreak: australia." i am haidi stroud-watts in sydney. sophie: i'm sophie kamaruddin in calling for. we are counting down to the major market opens. ♪ haidi: here are the top stories we are covering in the next hour. u.s. equities staging a late rally. worries about global growth seem to be on the wane. investors optimistic about the trade deal, but warns there is no agreement yet.
the bank of england says chances of a new deal brexit are alarming high. jeremy corbyn says talks with theresa may were inconclusive. later in "bloomberg technology," jack dorsey throws his support behind more tech regulation in an exclusive interview with bloomberg. for now, let's get started with a quick check on market close here in the u.s. stocks advanced and saw a close at the highest level of the year. the s&p 500 gained ground for a fifth consecutive session. the longest winning streak in two months. highest bubble since october. more optimism over a potential trade deal between the u.s. and china. facebook fell after bloomberg millions ofthat facebook user records were found on cloud computing servers. we are seeing more broad optimism across the world. global stocks on the cusp of a bull market.
almost 20% higher since december lows. let's see where the markets stand in asia. sophie. saide: that optimism looks to be transmitted to asia, where the future is pointing to modest gains, ready to track the rally we saw on wall street as trade talks continue in washington, d.c. we are ready to extend 11% advance for the msci aipac index. to keep on the radar, south korean figures, trade data from malaysia. keep in mind, taiwan is off-line for the holiday this thursday. shery: thank you so much for that. talking about the u.s. china trade talks. they are edging toward a deal with the white house economic adviser, saying negotiators are making good headway. joining us for the latest is bloomberg's trade and globalization reporter.
how close are we to reaching a conclusion on the stocks? reporter: we are definitely in the endgame. the big question is how long the endgame is going to drag on. trade negotiations do tend to drag on for a while, so there is a real possibility this can go beyond this week. at the same time, we are getting lots of noises that we may be close to some kind of announcement of a date for a meeting between xi jinping and donald trump. that would be a meeting to close the deal and that would of these they be incredibly encouraging. that is the first time that the two leaders would have met or since december 1 last year, when they began the trade truce that led to current talks. haidi: what have the main issues been? there are many left to resolve. what are we learning about what kind of shape this deal is taking? shawn: what you always end up with in the trade talks are the
hardest issues. the really political issues. politically sensitive issues left to the end. there are two big ones. how long the u.s. will maintain tariffs on china, and how it will scale them back in response to good moves from china. secondly, how in the longer term in the coming years i deal will be enforced, to make sure china is living up to its commitments. we have gone a long way in terms of the content of the deal from a simple package of purchases, soybeans, natural gas, etc., to somehing that will involve broader commitments toward economic reforms by the chinese that would cover things like intellectual property, the forest transfer of technology, and possibly industrial subsidies. only thing i remember from last week was china saying that there was new progress on the talks. shawn: to be fair, we are not
hearing in public very much from other side. you heard larry kudlow said the has been progress. he didn't give much detail beyond that. likewise, the chinese have been indicating progress. those are good signs. that is a sign that both sides want to make a deal and both sides are under pressure to make a deal. if you look at the market rally we have had in the first quarter of this year, a lot of that is the result of settling fears about a trade war. i don't think either donald trump or xi jinping want to blow that up again. bloomberg's and globalization reporter shaun donovan joining us with the donnan joining us. theresa may suffering another defeat in parliament, with mps defeating her vote. that included a time limit on the eu membership failing. .otes are still underway
let's get the latest trendy international government editor. what are they voting on tonight? where we at? is there any sense that the last round of boats on potential different options, one of them got quite close -- are we getting any closer to anything close to a consensus? reporter: we're moving pretty quickly through the amendments tonight. these are amendments to a bill that is being been very quickly and it is hoping to pass in a single day to rule out a new deal exit. have beene amendments passed with nods and shouts, rather than full discussion. we are getting close to the end, the vote on the deal as a whole. that is a key one. so far, in the amendments, attempts to weaken the bill have failed. they are trent up a hard limit on things like time.
so far, it seems to be heading toward a quick completion, possibly in about 20 minutes. that primenow minister may met with labor leader jeremy corbyn earlier. what has come out of that meeting? rosalind: they did indeed. they sat down and said the first round was constructive. this talks were constructive but inconclusive. it seems that theresa may did not get a lot of ground, they are making again tomorrow morning on what they say will be technical issues. the real elephant in the room is whether theresa may votes for the customs union on the table. that is a potential price for labor, who would like to be tied more tightly to eu trading rules. so far, there is no indication of that. these discussion seven going on for several days. the main thing is that they are happening. lot about the a survivability of theresa may, but so far, she has managed to
cling to power. i was looking at the potential for elections being held? key thing is what she comes up with jeremy corbyn. if it does become a live option for that field, she could really face a significant backlash from the hardliners within her own party. that could come down to a mutiny. for a year after that initial -- they could call a vote of no-confidence on themselves, the entire government, risking bringing down the government in order to avoid a stuck brexit entirely. that would trigger an election in the coming months. theresa may had said that her job is to get brexit done and step down, and whether she was the leader to lead the tories into another election would be very much up in the air. this is critical for her in the coming weeks.
we hang on what she comes out with him terms of a deal with jeremy corbyn. haidi: really appreciate that. our international government executive editor on the line from london as they voting continues. we are keeping an eye on any outcomes. breaking news saying that the nissanthis on autos -- autos head arriving, according to nhk. according to nhk, without saying where that it obtained the information. will bece says ghosn questioned on breach of trust and was rearrested. we are reporting that in another bizarre plot twist, drama in his long-running legal troubles, the former chairman maybe rearrested on charges just as he had tweeted that he was planning to hold a news conference on april
11 to tell the truth about his side of the story. these allegations against him on financial crimes. we are hearing reports from nhk that he has arrived at the prosecution office after being we arrested this morning. more on that developing story as details become available to us. in the meantime, let's get the first word news. the reserve bank of india meets leaders wednesday, with observers saying they are scoped to cut the key rate, get -- given inflation. cut,ase case is for a 25% along with dovish language. whatever the size of any rate cut, the r.b.i. is inspected to inject more liquidity into the banking system. the bank of japan has shown some rare good news with demand in the economy exceeding supply in the fourth quarter but the most in 26 years. the governor has repeatedly pointed to the output gap as a confidence measure that the bank
will eventually achieve its 2% inflation target. cpi's lead to 7/10 of 1% in february as exports and growth weakened. former malaysian prime minister has appeared in court to deny the first seven of 42 charges he faces in connection with a scandal. at least $4.5 billion disappeared from a fund with more than $10 million landing in one of his accounts. he is accused of corruption and money laundering and has denied any wrongdoing. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am selina wang. this is bloomberg. ♪ haidi: still ahead, facebook is hit with another privacy scandal as millions of records are found on amazon cloud servers. shery: up next, don't give up on japan. is time to buy japanese stocks. this is bloomberg. ♪ is bloomberg.
haidi: counting down to the start of trading this thursday morning. looking like an unchanged start to the day, although elsewhere, taking a look at the stats in tokyo and hong kong, looking at the global equity rally. closing pretty close to the highs, ending fractionally a u.s.e with hopes that china trade deal may not be far away. haidi stroud-watts in sydney. shery: shery ahn in new york. you are watching a break us china. investors are looking for meaningful progress or substance around the deal. its promises and the proposals currently in the works. is nikko asset management americas chief global
strategist and says it will take a lot to shift the needle. good to have you with us. does this mean that trade optimism has been priced in, no more room for upside on this front? john: a lot has been priced in. nobody is expecting a big deal at this point, but they are expecting good progress and that is what we're seeing. it will depend on the mood of the president at the time. he wants one for the good of the economy and for his future election. shery: when it comes to the economy, how well does it bode for the global market? semiconductors seem to be recovering. this gtv chart showing the rally that we saw today and we're almost getting into territory in your second panel. does this signal a bright future for the economy? john: it is good news. the fact that people are expecting a second-half recovery is well baked into the market.
if it happens, that will help global prospects for markets tremendously. if that is the upside, what is the risk side? the fed and other central banks are behind the curve and have overdone it, given some of the data that is coming recently has suggested that we see a bottoming out when it comes to global growth. john: close to bottomed out. certainly, there is a chance. we think there is a good chance for a hike in the fourth quarter this year, given the economic recovery. bond yields have bounced back quite a bit. nobody is expecting a tremendous problem going forward. if the fed hikes in the fourth quarter, that is not the end of the world, as far as we are concerned. the meantime, the fed turning dovish is giving emerging-market central banks reading space, with the exception of india, which we are expecting to move later today.
i want to take a look at relative performance of stocks. this has been a crowded trade, after what has been a torrid couple of years. they are currently sitting at the highest in six months, or the biggest rally we have seen in that time. shanghai, china stocks crossing the 3200 level for the first time in about the year. is there further upside? what is the biggest concern? i know you cited issues like turkey, but i am wondering if the u.s. dollar is a worry? john: turkey certainly is a concern. have to watch that quite closely. equities portion of em is asia. especially taiwan and korea. rally,s a semiconductor those two countries are going to benefit tremendously. a lot the bounce back has been priced in, but there is certainly more to go for those countries if data centered
demand picks up. and will be crucial for the outlook. we don't have a strong view on the dollar being strong or weak. we look for it to be rather stable in the six months ahead. that shouldn't hurt emerging markets too much. shery: where does japan stand, because we have seen the topics lag mobile -- global markets. one of your strongest conviction calls is japan. why? john: is doing pretty miserable for japan, partly because of the chinese downturn, because japan is very exposed to china. it is its largest trading partner. it is hurt by the semiconductor and smartphone down cycle we have seen. foreigners have been massive sellers of japan. ,ast year and this year valuations have reached a low level. china except up, like everybody expected to. japan is a most certain to follow. haidi: thank you so much for
bloombergs is technology global link. i'm haidi stroud-watts in sydney. let's take a look at the top global tech stories. the ride steering -- ridesharing start up hello bike plans to raise funding as it fights for market share in china. the company may seek as much as $1 billion to gauge interest from existing investors and
potential new backers. of academyursuit awards could become an antitrust drama. bloomberg has learned that the department of justice has warned the academy of arts and sciences has warned about potential rule changes. the government says they may violate laws meant to protect competition. google says it's u.s. workforce has become more asian, less white and male. gains in the number of female, black and the tina workers. asian staff posted the biggest increase and now make up 40% the workforce. twitter cofounder jack dorsey is echoing mark zuckerberg's call for a heavier regulatory hand when it comes to tech. many social media companies have pivoted to focus on healthier conversations among users, after attracting criticism from issues such as the spread of fake news and hate speech. interview,site
dorsey says he would welcome more strict rules. generally, i think regulation is a good thing. it is a net positive. our role in the company should be that of an educator. helping regulators and legislators understand what is happening with technology. the trends that we are seeing, however system works. the job of a regulator is to ensure protection of the individual and a level playing field. as long as we're working , that has goodt outcomes. i have not looked at all the postfic feedback to mark's , but i generally think that there are things like gdpr that have been positive, not just for our platform, but also for the industry in general. specifically, it adds a lot more clarity around privacy and how data is being used.
typically, a service like ours, our terms of service are hard to read and follow and not necessarily the most customer focused. groundt a stake in the to at least bring out some elements so you have more control over and that is a net positive. there is more room for that, then absolutely. going to be any one party responsible for fixing this. putting too much of that weight on any one entity, whether it be a corporation, individual, government is not going to work. we have to think about it differently. we have to think about it as a desire. we have a desire. conversation, the our desire is to increase healthy conversation. shery: that was twitter cofounder jack dorsey speaking to bloomberg in toronto.
breaking news, former this on chairman -- nissan chairman carlos ghosn has been rearrested. he has arrived at the tokyo prosecutors office for voluntary questioning on breach of trust allegations. he is now -- he has now been rearrested. this comes after he was freed on bail for almost a month, then announced on twitter that he would have his first news conference. that is the latest from nhk, saying he has been rearrested on fresh allegations. a year after the cambridge analytic a scandal, user data is still showing up in places it shouldn't. researchers at a cybersecurity firm found user information posted publicly on amazons crowd computing servers. in one instance, half a billion servers were openly stored. joining us is bloomberg tech
executive editor. how bad is it, and is this data from before the scandal or is it new data? tom: this is not a good look for facebook. it shows that there is data that facebook lets out there to third parties over many years. i don't know exactly when their relationship was with this particular media outlet, but clearly what happened is over the years, facebook had these arrangements with companies that enabled them to gain access to what you and i put on facebook every day. what happened to it once it was removed from the facebook platform, facebook lost control of it, lost insight into what happened to the data. several years later, it shows up on amazon web servers. we talked to the researcher who discovered this and put that
same question to him. he said there is no telling how much information is still out there, like with the case with cambridge analytica. one year after facebook got into --much trouble for initially one year after revelations about how much a lost control over user data. does this suggest that it is difficult to keep track of where the data ends up or is this a sense that it is carelessness and a lack of responsibility on the custodians of this information? tom: i think it is a combination of all of the above. remember that facebook set up these relationships that would enable third parties to use facebook information, the things you and i post, the comments we make for example. our friendship networks. somehow to their advantage. again, a completely lost control
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haidi:haidi: you are looking at live pictures of the u.k. house of commons looking pretty empty. just pass by one vote a deal for a new deal brexit. it now goes to the house of lords. the path firming up somewhat after the u.k. parliament voted by one vote to block the new deal brexit. we are seeing a bit of edginess when it comes to investor sentiment on the possibility of a new deal brexit. implications are in -- are important. brexit will no longer have the
option of a new deal exit. whatever may comes up with in the talks with jeremy corbyn, which are ongoing, potentially facing a longer extension as eu membership. that key vote to block the new deal brexit was a highlight this evening. that has passed by a remarkable single vote. let's get you to first word news with selina wang. top white house economic adviser larry kudlow says trade talks with china are making good progress, but there is no deal yet. speaking as negotiations resumed in washington, he said the two sides are making headway and moving closer to an agreement. the issues include protection for american intellectual property and enforcement mechanism to make sure china honors its commitment. trump administration officials are examining options for closing part or all of the mexican border. in case the president goes ahead with his threat, preparations are said to be somewhere between
a theoretical discussion and actual mentation planning. officials are working on how to prevent widespread disruption of the economy if the president decides to seal off the border. ethiopia will release a preliminary report thursday into last months 737 crash that killed 157 people. initial findings may indicate whether computerized software that forces the plane into a dive may have played of role. the same system activated on the doomed i in air fight months earlier. pilots how it told to design the system following that disaster. boeing is delaying test flights to send astronauts into space for nasa, including the first launch of a rocket that will carry a crew. it is now targeting august for a flight, in which it's star liner caps on will write a rocket built in conjunction with lockheed martin. boeing is looking at a lunch for the end of the year, some six
months later than scheduled. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am selina wang. this is bloomberg. ♪ shery: we could be headed toward a risk rally in the asian session as we see more optimism toward a softer brexit and trade tensions easing. sophie has the latest on the market. pulling up the board, it looks agree could be bracing for more of a mixed session in asia. take a look at kiwi stocks extending losses for a second day. a tepid start after the benchmark cap a seven-day run. is the best winning streak since october, 2017. again, we could be looking at modest gains. flipping the board, to check in on the aussie dollar. -- positive sentiments
from the u.s. china trade talks, as well as supported by iron ore hitting a five-year high. increasing concerns that prices will be drawn out and regulators have ordered dozens of dams to be shut. trading is getting underway in asia. let's take a look at what we are watching this session. oft recapping the latest out brexit, which will come as a bit of a relief for investors, now that the no deal brexit option has been blocked. just one vote, really extraordinary. we also have optimism when it comes to trade. does that mean will get another leg up? andrea: investors are definitely looking for any fresh catalyst to extend the rally. it has been going on, despite some patchy global growth in the last few months. if we can go straight into the stocks in developed and developing markets are on
the cusp of a bull market, which to keepu the desire this going. they are up more than 19%. that is because of a string of positives this week. it started with manufacturing data from the u.s. and china. also, optimism that we are getting closer to a trade deal, now we have the possibility of a soft brexit. definitely a feeling that things are not as bad as investors have thought. that is certainly something that defined trading this week. details. will turn to if you read the stories closely, there are mutterings of caution there. has been in moving feast for investors. certainly at the moment, there is a sigh of relief, a return to risk assets. that is where we see bond deals go up. haidi: we're seeing foreign
investors have been very picky, with lots of money going into india. it has not been a wholesale interest across the board. andreea: that is right. despite this rally we have seen , what isup 11% interesting here is that japan has counted for much of that. they have done $20 billion in equities in the first quarter. that chart shows that the msci stocks that don't include japan has outperformed. where has that money gone? largely into chinese stocks. about $17 billion has been funneled there. that is in line with a return to emerging-market assets after they were pummeled last year. the chinese market is among the , a top performer. the japanese market, pretty mediocre returns. where else have investors put
their money in emerging markets? in india, south korea and taiwan. shery: thank you so much for that. asiaberg's cross asset editor. you can find her charts on gtv on the bloomberg library. a trade web markets now announcing to have priced their initial public offering at $27 per share. this is a platform that is partly owned by financial data platform. this pricing coming after they increase the number of shares that were on offer and the listing below have been able forth. that would be this week on the nasdaq global select market under the ticker symbol tw. they have priced 40 million shares at $27 per share. we now turn to softbank, which is said to want to add $15 billion to its huge $100 billion vision fund. we are told the founder has been alking to investors about
second fund. let's get more from selina wang in san francisco. $100 billion wasn't enough? why is softbank thinking of raising more capital? selina: softbank is looking to add as $15 billion to this nearly $100 billion fund they already have. this is about softbank trying to keep up its dealmaking streak. they need a consistent flow of funds. of look at the pace dealmaking, it is pretty astounding. in less than two years, they have invested $70 billion into startups like dog walking, ride-hailing, cancer detection, and smart window glass. it is very far reaching. in addition to this fund, he has aimed to raise another fund every 2-3 years and we have reported varying early-stage talks for another massive fund. haidi: what are the options here when it comes to more fundraising?
selina: they are weighing a variety of options. one is to get in this city -- existing investors to get repayments and reinvest that. they can take out a loan and talk to other investors to raise capital. another option we have heard is softbank could take the profit they have gotten from their investments in companies like flip car and put that money back into the fund. we have heard these talks range from early to mid-stage. unclear whether a deal will go through, but discussions have been ongoing for some time. for a while, softbank had a very close relationship with saudi arabia. has that relationship evolved, given the assassination of jamal khashoggi? selina: the crown prince had told bloomberg news that he was willing to pour another $45 billion into the next fund. we don't know if the promise still holds.
the geopolitical concerns have come to daddy arabia -- to saudi arabia in the light of the death of the journalists has soured the relationship. it has been reported by other outlets that that relationship is a little tense in addition to the geopolitical concerns. there is concern from the saudi investors that softbank is investing too much too fast and not doing enough cost control internally. our bloomberg tech reporter selina wang from san francisco. coming up, the u.s. could give china until 2025 to meet some of its trade pledges as talks continue in washington. we are getting analysis from the street -- this is bloomberg. ♪
i'm shery ahn in new york. haidi: i am haidi stroud-watts in sydney. you are watching "bloomberg daybreak: australia." a top white house economic aid says negotiators are making good nogress, although there is deal yet. let's take a look at the state of play with christopher campbell, duff & phelps chief strategist, former assistant secretary to the u.s. treasury. i want to throw up a chart looking at economic policy risks faced by investors in china in the u.s. in a broader globally. we are seeing a greater level of economic risk when it comes to china. in the yellow, for the u.s., it .emains elevated my problem with these trade talks is even if you get a short-term agreement that includes commodities trade and alleviation of tariffs and shorter term low hanging fruit a difficulthis not strategic competition between
washington and beijing that will play out in years to come, given that we have an increasingly assertive and economically dominant china? christopher: there is no question. i will take a step back and think about this. 40 years ago, the u.s. used to get out foreign aid to our countries around the world. that became politically unpopular, so we moved to a trade strategy where we gave trade versus aid, or trade not aid. the has done so well that most of these countries we allowed duty-free access to our markets have grown into our competitors. we are now in a place where we are trying to rebalance those relationships and we for see that happening with china. -- having worked at the treasury, i worked closely hauser and i have supreme confidence they will be
able to deliver a comprehensive agreement. the market may not have priced that in, because of a relationship we have had the china in previous administration's and this administration, it has been difficult. i think the president has suggested he is willing to take -- make the tough calls and impose tariffs necessary to discipline an outcome that he believes will be the best. haidi: how do you work your way around making a deal that is doorceable, sustainable, how you do dispute resolution when you have an administration that has been against traditional institutions like the wto? christopher: in the early part of this administration, the president had some skepticism about wto, but i don't think that is going to stop a conference of agreement. use thehe will international institutions to be able to discipline a
comprehensive agreement. i think it will be good for both the states and china. remember, these are symbiotic relationships. we have a symbiotic relationship with china, where it can bend but not break. china must have access to u.s. consumers and right now, we are dependent on manufacturing. at the end of the day, we will discipline a good agreement and i believe the administration will not reach an agreement unless it will rebalance in some way. the problem with china is that we get these promises, but the implementation is where it becomes challenging. what will be an effective implementation enforcement mechanism here? sanctions, tariffs? christopher: i think the president will keep everything on the table. he has demonstrated that he is willing to impose sanctions and tariffs to make sure we get to an agreement and i don't believe
he will take those off the table. shery: there is so much political infighting, it seems like the one issue everyone agrees on is having to be tougher on china. you're trying to achieve fair trade with china. is the bar set to high to satisfy everyone? christopher: everyone loves to set the bar high in washington, is my experience. this is one of the reasons we started and institute to be able to look at comprehensive issues, because we hear so much from our clients on the challenges of global uncertainty. that is borne out with china. at the end of the day, we have to step back and think about, how can we get to a better deal? i'm fairly certain and confident that we will get someone. haidi: do you think the bilateral strategy is working out?
there is some criticism that the u.s. has made it difficult for themselves by creating vacuums in the asia-pacific. is it better to try to get back in with the tpp, for example? christopher: as you know, that has gone forward. personally, i think it was a mistake to walk away from tpp. i think they are re-examining their position on this. i think it is very important that we lock in our economic agreements and relationships with countries around the world. certainly within asia. had tpp enforced now, i believe it would have raised our profile and given us more leverage. i don't believe -- i think we will still be successful in china absent joining tpp, but i think that agreement is one we should look at. is volatility something we should expect in the next coming decades, given that we know the relationship between the u.s. and china will continue to create tensions and frictions in the years to come?
christopher: it is agree question, but i think we will have to see what the agreement is. if it is comprehensive and allows the u.s. to be able to take their grievances and find a way that will be safe and fair on both sides, i think you see a lessening of the challenges. if it doesn't have that, they will maintain volatility, but i know the ambassador light hauser to mnuchin, it is their goal see that there is more certainty going forward. i'm confident that we will be able to get that agreement done. shery: sources are telling bloomberg. the u.s. has said a 2025 target to get china to meet some of their trade pledges. this seems a very limited timeframe. can they really get to an agreement that will involve structural changes from china that need to be achieved by 2025? christopher: one thing i'm certain of and all of my trade travels and relationships with china says that of china leans
in, they can get anything done almost as quickly as they want to. if this is something they take seriously, which i believe they to they can move and adapt their environment and their economy rapidly. shery: thank you so much for joining us today. christopher campbell, duff & phelps chief strategist. we will have another big guest later today. ceo peter coleman will join us for an exclusive interview at 12:40 p.m. sydney, 9:40 p.m. in hong kong. if you missed part of the interview are want to rewatch function is your on the bloomberg. you can dive into any of these securities or functions we talk about. become part of the conversation by sending questions for our guests. this is for bloomberg subscores only. this is bloomberg. ♪
i am shery ahn in new york. stroud-wattsaidi in sydney. let's get a quick check on the latest business flash headlines. blackstone raised more than $22 billion for its flagship a.l. fund, making it the largest in company history. completed the first close for its eight private equity fund this month. there is no limit, which the company expects to eclipse apollo's record, $24.7 billion, when fundraising wreps up. shery: tesla model three is proving popular in germany and going close in its second month of tales -- sales. registrations jumped fivefold in march, just 356 shy of deliveries. last monthes dropped due to stricter emission test in europe. a decision to end is up production and the changeover of
older models. haidi: top chinese carriers on news that beijing is said to cut aviation taxes to support the economy. china eastern rising, while china southern climbed 15%. the lower charges will come into effect from july 5. shery: july -- travel to new york may be trickier. one of the four runways at jfk is closing for repair work this week and is not expected to reopen before november. the runway currently handles about third of all arrivals at the airport. delta says it will work with the port authority and the faa to manage traffic. china's insatiable demand for foreign goods has led to the emergence of a unique retail experience in australia. a growing number of stores are catering to the cycle of trade, where people buy products
overseas and ship them to the chinese mainland. our reporter recently visited one such story in sydney and she joins us now. this has been going on in an informal way. you see people buying things, taking photos, putting it up, but now there is a structured retail experience around this concept. reporter: that is right. basically, it is a one-stop shop where anyone can go into the store in sydney and have everything in front of you to buy. they ship automatically and deal with customs and everything. farm sale,bit like a a lot of help and beauty products. a lot of australian brands. a lot of calcium milk products. this is catered to the chinese market. how much potential is there? reporter: a lot of potential. the day that we went, we met up with a girl who told us she goes there every day and she is not the only one who goes there. they say they have a lot of regulars and while we were
there, we saw people drop by to take a look. a lot of the chinese community go there. i think that with the success of this store, they opened another three stores. i think they will continue to roll out more as this becomes more popular. haidi: it is a bit like those amazon stores, but we talked about the two obvious things, milk powder and vitamins. what were they buying on the day you went? thuy: the day i visited, mostly milk calcium products. saidirl that we spoke to she was buying a lot of milk products for her friends and family in china, because a lot have babies and with the infant milk scare 10 years ago, there is still that reticence to buy. haidi: the trust deficit. thuy: i have been seeing a lot of chinese customers prefer it to us join milk products. haidi: a bit of a boom for retailers. thank you so much for that.
our bloomberg reporter taking a look at the phenomenon taking hold in australia. let's sic a look at what we are setting up for our market open. christopher: -- : aussie futures look to take a pause after the recent rally that brought it to the highest level. looking for stocks on the radar, taking a look at bhp and others, after the ceo said iron shipments are rising in the next 18 months. please noted the approval of the iron bridge product will likely .ncrease its financial leverage we're watching retail food group as regulators are monitoring trading in the fast food franchisor in the wake of big pricing. you so much. plenty more still ahead. we will have an exclusive interview with the retail ceo
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haidi: in morning. australian markets have just opened for trade. shery: and good evening from new york. sophie: welcome to daybreak he -- daybreak: asia. ♪ investors welcome optimism about a trade deal. great progress made so far but there is a warning there is no agreement yet. reports from talking -- tokyo